Sri Lankan shares end down ahead of govt policy statement

Reuters Staff

COLOMBO, July 18 (Reuters) - Sri Lankan shares ended weaker
on Monday, from their more than three-week closing high hit in
the previous session, as investors turned cautious ahead of the
government's policy statement next month.

The bourse touched a three-week high on Friday after
investor sentiment was boosted with Sri Lanka raising $1.5
billion in its first sale of dual-tranche eurobonds last week,
as over $5.5 billion in offers for the issue showed that global
investors were bullish about prospects of the $82 billion
economy.

After the bond deal, yields in local T-bill auction fell
along with the 364-day T-bill rates at Wednesday's auction for
the first time since April 15.

ADVERTISEMENT

The benchmark Colombo stock index in thin trade ended
down 0.11 percent or 6.88 points at 6,415.81, slipping from its
highest since June 21 hit on Friday. It gained 0.9 percent last
week.

"There was nothing much happening today. Probably, investors
were awaiting the Prime minister's policy statement to see the
direction," said Dimantha Mathew, head of research, First
Capital Equities (Pvt) Ltd.

Prime Minister Ranil Wickremesinghe is expected to announce
the country's economic policies in August, said new central bank
chief Indrajith Coomaraswamy last week.

Turnover stood at 357.5 million rupees ($2.46 million), well
below this year's daily average of around 738.3 million rupees.

ADVERTISEMENT

Overseas investors, who were net sellers of shares worth
4.92 billion rupees so far this year, were net buyers of
equities worth 134 million rupees on Monday.

Shares in Lanka ORIX Leasing Company Plc fell as
much as 2.72 percent while the biggest-listed lender Commercial
Bank of Ceylon Plc lost 0.77 percent.